Ferrochrome projects in South Africa - Outotec
Ferrochrome projects in South Africa - Outotec
Ferrochrome projects in South Africa - Outotec
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More out of ore!<br />
Outokumpu Technology<br />
<strong>Ferrochrome</strong> <strong>projects</strong><br />
<strong>in</strong> <strong>South</strong> <strong>Africa</strong><br />
Jorma Daavittila<br />
Vice President, Ferroalloys sales
Content<br />
<strong>Ferrochrome</strong> <strong>projects</strong> <strong>in</strong> <strong>South</strong> <strong>Africa</strong><br />
• Base Metals division<br />
• Introduction<br />
• Technology transfer sales<br />
• Typical scope <strong>in</strong> company’s <strong>projects</strong><br />
• Project implementation<br />
• Summary of <strong>projects</strong><br />
• Success factors<br />
• References<br />
CMD 2007 | 2
Base Metals division<br />
• Base Metals offers <strong>in</strong>dustry-lead<strong>in</strong>g technologies for the process<strong>in</strong>g<br />
of non-ferrous metals and ferroalloys<br />
CMD 2007 | 3<br />
Copper<br />
technologies<br />
Nickel<br />
technologies<br />
Z<strong>in</strong>c<br />
technologies<br />
Precious metals<br />
technologies<br />
Ferroalloy<br />
technologies
Introduction<br />
1. Chrome reserves<br />
• <strong>South</strong> <strong>Africa</strong> - 5,000 million tonnes (MT), 76% world’s reserves<br />
• Zimbabwe - 930 MT<br />
• Others - 800 MT<br />
2. Ore production<br />
• World total - 19 MTPA<br />
• <strong>South</strong> <strong>Africa</strong> - 7,5 MTPA, 40% of world’s total production<br />
• Kazahkstan - 3 MTPA<br />
3. <strong>South</strong> <strong>Africa</strong>n ferrochrome plants<br />
• FeCr production 3,2 MTPA (e2006)<br />
• 49% world’s FeCr production<br />
Ma<strong>in</strong> source: MB-ferroalloys conference 2006<br />
CMD 2007 | 4
Introduction (cont)<br />
4. Outokumpu Technology’s activities <strong>in</strong> <strong>South</strong> <strong>Africa</strong><br />
CMD 2007 | 5<br />
I. Before sanctions<br />
• Close cooperation and some deliveries<br />
II. Dur<strong>in</strong>g sanctions (1985 – 1993)<br />
• Contacts ma<strong>in</strong>ta<strong>in</strong>ed, no sales<br />
• New Outokumpu process developed<br />
III. New <strong>South</strong> <strong>Africa</strong><br />
• Market<strong>in</strong>g restarted immediately after the removal of the sanctions<br />
• 9 <strong>Ferrochrome</strong> <strong>projects</strong> <strong>in</strong> <strong>South</strong> <strong>Africa</strong> <strong>in</strong> last 10 years<br />
• More under development
<strong>South</strong> <strong>Africa</strong> Bushwelt complex<br />
CMD 2007 | 6
Outokumpu Technology’s<br />
Technology Transfer sales<br />
1. Outokumpu Technology’s technology used <strong>in</strong> almost<br />
half of the <strong>South</strong> <strong>Africa</strong>n FeCr production <strong>in</strong> 2006<br />
2. The technology has set new standards for<br />
environmental requirements<br />
3. Only one major producer is not us<strong>in</strong>g Outokumpu<br />
Technology’s technology yet (negotiations ongo<strong>in</strong>g)<br />
CMD 2007 | 7
CMD 2007 | 8<br />
Gr<strong>in</strong>d<strong>in</strong>g<br />
Pelletiz<strong>in</strong>g<br />
Filter<strong>in</strong>g<br />
S<strong>in</strong>ter<strong>in</strong>g<br />
– smelt<strong>in</strong>g capacity<br />
<strong>in</strong>creased by 15%<br />
Gas clean<strong>in</strong>g<br />
Smelt<strong>in</strong>g<br />
Preheat<strong>in</strong>g<br />
- energysav<strong>in</strong>g<br />
500 kWh/t<br />
– high metal recovery
Typical scope of supply<br />
1. Technology transfer package<br />
• Basic eng<strong>in</strong>eer<strong>in</strong>g of the plant<br />
• Supply of the key equipment<br />
• Tra<strong>in</strong><strong>in</strong>g of customer’s personnel<br />
• Installation and start-op supervision<br />
• License<br />
2. <strong>South</strong> <strong>Africa</strong>n contractor<br />
• Supply of the rema<strong>in</strong><strong>in</strong>g equipment<br />
• General manag<strong>in</strong>g of the project<br />
• Construction and actual <strong>in</strong>stallation of the plant<br />
CMD 2007 | 9
<strong>South</strong> <strong>Africa</strong> ferrochrome plants<br />
CMD 2007 | 10<br />
Merafe (SA-Chrome)<br />
Hernic <strong>Ferrochrome</strong>,<br />
Samancor Ferrometals,<br />
Samancor Tubatse<br />
Assmang Chrome<br />
Xtrata Wonderkop<br />
International Ferro Metals (<br />
ASA Metals<br />
Xtrata Lydenburg<br />
Samancor Middelburg<br />
Xtrata Rustenburg<br />
Outokumpu Technology
<strong>South</strong> <strong>Africa</strong> ferrochrome plants<br />
CMD 2007 | 11
Project implementation<br />
1. Basic eng<strong>in</strong>eer<strong>in</strong>g, 5 months<br />
2. Equipment manufactur<strong>in</strong>g and supply, 7-11 months<br />
• Manufactur<strong>in</strong>g <strong>in</strong> Europe (FOB-delivery)<br />
• Manufactur<strong>in</strong>g <strong>in</strong> <strong>South</strong> <strong>Africa</strong> (DDU-supply)<br />
3. Installation and start-up<br />
• Outokumpu Technology’s supervision<br />
• Mechanical completion -> Start-up<br />
• Performance demonstration<br />
4. Acceptance<br />
• Overall schedule, 18 months<br />
5. Customer support service<br />
• New deals<br />
CMD 2007 | 12
Success factors<br />
� Own technology, (Tornio plant)<br />
• Good references<br />
• Operat<strong>in</strong>g and ma<strong>in</strong>tenance experience<br />
• Proven competitive technology<br />
� Environmentally friendly<br />
� Energy efficient (figures <strong>in</strong> flow sheet)<br />
� Very high operational availability, 95 – 99%<br />
� Pori Research Center<br />
• Technology development <strong>in</strong>cl. pilot tests<br />
• Test<strong>in</strong>g of customer’s materials to def<strong>in</strong>e design and<br />
operat<strong>in</strong>g parameters<br />
• Process support <strong>in</strong> market<strong>in</strong>g and sales as well as <strong>in</strong><br />
project implementation and start-up<br />
CMD 2007 | 13
Success factors (cont)<br />
� Good, reliable products based on own development<br />
• Steel belt s<strong>in</strong>ter<strong>in</strong>g<br />
• Smelt<strong>in</strong>g with preheat<strong>in</strong>g and effective gas clean<strong>in</strong>g and<br />
gas utilization<br />
� Cooperation with local partners<br />
� Good personal relations/mutual trust<br />
� Well operat<strong>in</strong>g plants <strong>in</strong> <strong>South</strong> <strong>Africa</strong><br />
• Active service after start-up<br />
• Process support<br />
• Life cycle commitment<br />
CMD 2007 | 14
SAMANCOR, FERROMETALS<br />
• CONTRACT 1996<br />
• 520,000 TPA PELLETISING<br />
PLANT (CHROMITE ORE)<br />
• 2 x 48 MVA FeCr SMELTER WITH<br />
PREHEATING<br />
CMD 2007 | 15
HERNIC FERROCHROME, HOT3<br />
• CONTRACT 1998<br />
• 350,000 TPA PELLETISING<br />
PLANT(CHROMITE ORE)<br />
• 54 MVA FeCr SMELTER WITH<br />
PREHEATING<br />
CMD 2007 | 16
HERNIC FERROCHROME (F4PS2)<br />
• CONTRACT 2004<br />
• 350,000 TPA PELLETISING<br />
PLANT (CHROMITE ORE)<br />
• 78 MVA FeCr SMELTER WITH<br />
PREHEATING<br />
• BIGGEST FURNACE<br />
WORLDWIDE<br />
CMD 2007 | 17
CMD 2007 | 18<br />
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